Power Grid Corp gains on acquiring two SPVs from REC Power

Power Grid Corporation of India rose 2.52% to Rs 231.85 after the state-run company said it has acquired two special purpose vehicles (SPVs) from REC Power Distribution Company.

REC Power Distribution Company (RECPDCL), a wholly owned subsidiary of REC under Ministry of Power, has handed over two projects specific special purpose vehicles (SPVs) 'Fatehgarh Bhadla Transco' & 'Sikar New Transmission' to Power Grid Corporation of India.

The selection of Power Grid Corporation was carried out through tariff based competitive bidding (TBCB) for selection of transmission developers in line with the standard bidding documents and guidelines thereof as notified by Ministry of Power, Government of India.

Fatehgarh Bhadla Transco was incorporated for transmission system strengthening for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II-Part B.

Sikar New Transmission was incorporated for transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II - Part C.

The entire shareholding of both the SPVs, comprising of 50,000 equity shares, presently held by RECPDCL, has been transferred at par value along with all its assets and liabilities on 4 June 2021 to Power Grid Corporation of India.

On a consolidated basis, Power Grid Corporation of India reported a 26% jump in net profit to Rs 3,367.71 crore in Q3 FY21 on an 8.3% rise in net sales to Rs 10,142.48 crore in Q3 FY21 over Q3 FY20.

Power Grid Corporation of India was established by the Government of India (GoI) as the central transmission utility of India. As of 31 March 2021, the Government of India holds 51.34% in the electric utility manufacturing company.

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